If the government increases the income tax rate,they assume:

Name: If the government increases the income tax rate,they assume:
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When the government increases the income tax rate, individuals will have less disposable income to spend on consumption (C), leading to a decrease in C. As a result, aggregate demand (AD) will shift to the left, as AD is composed of C, I, G, and NX. Both I and G are unlikely to change in response to an increase in income tax rate, so option B and D can be ruled out.

If the Government Increases the Income Tax Rate,they Assume